One of the major trends in business over the past few years has been the increased used of cloud based hosting. There are two primary reasons for using a cloud hosting service: data security and data availability. Using a hosting service eliminates the risk of losing your data due to fire or flood because it is stored in a completely separate location. Also, the risk of theft is also lower because the data is not stored on your computer or in your office but rather on a password protected remote location. Even though your data is safe in a remote location, it is still a good idea to have a physical copy of your records (paper, flash drive, or external hard drive) in case something goes wrong with the hosting service. Since cloud hosting relies on internet service to work, having the backup copy will ensure your data will always be available when you need it.
The second benefit is data availability. What happens if two people in different locations need to access the same data at the same time. While there are a few options like Google Docs that allow for real-time collaboration, the most effective way to achieve this is using a cloud hosting service. From an accountant’s perspective, having access to the accounting software of a company at any moment and from anywhere is hugely beneficial. Likewise, the company can see the work that the accountant is doing at any time so they can constantly be kept up to date on how the business is performing.